At what age do earnings stop being indexed for inflation?

Earnings stop being indexed for inflation when an individual reaches age 60. This is significant because for Social Security benefits, wages earned prior to age 60 are indexed to account for inflation, ensuring that the benefits reflect the increased cost of living over time. After age 60, the earnings are considered “final” for the purpose of calculating benefits, meaning they will not be adjusted for inflation.

Understanding this age threshold is crucial for planning retirement and understanding how future benefits may be calculated based on an individual’s earnings history. At 60, earnings are locked in, impacting the benefit calculation that uses the highest 35 years of indexed earnings. After this point, any earnings won’t have the advantage of being adjusted, which could influence the final benefit amount received during retirement.